Eastman Kodak (NYSE: EK) is recently up $1.30 to $28.34 after the Financial Times reported Hewlett Packard (NYSE: HPQ) may take another look at EK as an acquisition target. EK has been frequently mentioned as a takeover target over the last four years. EK is expected to report EPS on 11/1. EK call option volume of 22,749 contracts compares to put volume of 11,136 contracts. EK October 30 straddle is at $2.15. EK November call option implied volatility is at 43, puts are at 49, above its 26-week average of 35 according to Track Data, suggesting larger risk.
Dow Chemical (NYSE: DOW), a diversified chemical company, is recently up $0.67 to $45.46 on unconfirmed reports DOW canceled an analyst meeting, renewing buyout chatter. DOW is expected to report EPS on 10/25. DOW call option volume of 16,275 contracts compares to put volume of 3,026 contracts. DOW November option implied volatility of 28 is above its 26-week average of 25 according to Track Data, suggesting larger price risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
